California Bill Holding Retailers Responsible for Breach Costs Advances
Jaikumar Vijayan writes on ComputerWorld:
Retailers hoping to convince California lawmakers not to pass a proposed bill that would require them to pay banks and credit unions for the costs associated with a data breach lost another important round Thursday.More here.
The state's Senate Appropriations Committee approved the landmark Consumer Data Protection Act or AB 779, by a 13-2 vote late Thursday. The measure, authored by Assemblyman Dave Jones, (D-Sacramento), won overwhelming approval (58-2) in the State Assembly in early June.
The bill is now expected to go before the full Senate in as little as a week. If approved, it would then go to Gov. Arnold Schwarzenegger for his approval.
posted by Fergie @ 8/31/2007 01:29:00 PM
1 Comments:
Paul:
In AB 779, proposed Civil Code Section 1724.4(b) is poorly drafted and confusing. It is not clear whether 1724.4(b) covers Internet and mail-order merchants (although the legislature probably did desire to cover those merchants). 1724.4(b)(2) is muddled about what does and does not constitute "sensitive authentication data" that a merchant is forbidden from storing. A literal reading of the words of 1724.4(b)(2) would forbid merchants from storing zip codes, even though Internet and mail-order merchants need to store zip codes for operational purposes. Pending Section 1724.4(b)'s poorly crafted language will be a roadblock as innovators try to invent the next PayPal. See detailed analysis at hack-igations.com --Benjamin Wright, Dallas, Texas
Post a Comment
<< Home